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In Canada, exports are “zero-rated” sales for Gary.S.T. purposes. This means that when you ship a supplement to someone outside Canada, you don’t charge V.S.T. Yet, you get to claim (or deduct on the G.S.T. collected by you) all the “input tax credits” (G.S.T. that you paid for business purposes) to make that foreign trade. The idea, I suppose, is to encourage exporting.
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